Lecture # 03

• Benefits of Quality Management.

• Quality and its relationship with Project Triple constraints.
• Organizational strategy and its relationship to projects and project Quality.
• Quality Management Approaches.
• Project Quality Tailor Considerations.
• Pre-requisites for Project Quality Management.
• Cost of Quality,

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 Recap of Lecture # 02
• Verbal Meaning of Quality
• History of Quality
• Fredrick Taylor?
• Walter Shewart?
• Edward Demings?

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 Recap of Lecture # 02
• 14 points of Edward Demings
• Josephs Juran’s teachings
• Modern techniques TQM, LEAN, SIX SIGMA,
ISO 9001 and Agile

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 Agile Quality Management
. Agile Quality Management is a quality management approach that is based on the Agile
methodology, which is commonly used in software development. It emphasizes a flexible
and iterative approach to quality management that allows teams to quickly respond to
changing customer requirements and market conditions.
• The Agile Quality Management approach is centered around four key principles:
• Customer satisfaction through continuous delivery: The focus is on delivering project
that meets the customer's needs and provides value to them.
• Embrace changing requirements: The approach is flexible and allows for changes in
requirements throughout the development process.
• Working software delivered frequently: The focus is on delivering working software
in short iterations, typically two to four weeks.
• Collaborative approach: The approach emphasizes collaboration between developers,
quality assurance teams, and other stakeholders to ensure that everyone is aligned and
working towards the same goal.
• To implement Agile Quality Management, teams typically use a variety of Agile tools
and techniques, such as Scrum, Kanban, and Continuous Integration/Continuous Delivery
(CI/CD). Quality is built into the development process from the start, with a focus on
testing and quality assurance throughout the development cycle. The approach also
emphasizes continuous improvement, with regular retrospectives to identify areas for
improvement and make changes as needed.
• Overall, Agile Quality Management is a flexible and customer-focused approach to
quality management that can help teams to deliver high-quality software that meets
customer needs and expectations in a fast-paced and rapidly changing environment.

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 Agile Quality Management
Aspect Agile Quality Management Traditional Quality Management

Approach Iterative and incremental development Sequential and linear development

Prioritizes customer collaboration and flexibility in Emphasizes detailed upfront planning and
Requirements
requirements documentation of requirements

Team structure Cross-functional and self-organizing teams Hierarchical and functional teams

Process Employs flexible and adaptable processes Follows standardized and prescriptive processes

Testing is integrated into the development process and Testing is done after the development phase and often
Testing
done frequently outsourced

Delivery Frequent and incremental delivery of working software Single delivery of a completed product or project

Feedback is constantly solicited and incorporated into Feedback is solicited only at the end of the project or
Customer feedback
development product cycle
Quality assurance is integrated into the development
Quality assurance Quality assurance is a separate and distinct process
process

Minimal documentation is required, focusing on Extensive documentation is required, often focusing on

Documentation
working software process compliance

Encourages collaboration, flexibility, and continuous Emphasizes adherence to process and hierarchical
Culture
improvement authority

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 So, What is Quality?
Quality means different things to different people and in different situations.
This list gives some of the informal definitions of quality:

• Quality is not a program; it is an approach to business.

• Quality is a collection of tools and concepts that are proven to work.
• Quality is defined by customers through their satisfaction.
• Quality includes continual improvement and breakthrough events.
• Quality tools and techniques are applicable in every aspect of business.
• Quality is aimed at perfection; anything less is an improvement opportunity.
• Quality increases customer satisfaction, reduces cycle time and costs, and
eliminates errors and rework.
• Quality is not just for businesses. It works in nonprofit organizations such as
schools, healthcare and social services, and government agencies.

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 A Formal definition of Quality
• The International Organization for Standardization (ISO) defines quality as
“the degree to which a set of inherent characteristics fulfills
requirements” (ISO9000:2000), PMBOK refers to the same definition.
– This definition means that quality is measured by how well a product,
service, or result meets the needs and expectations of its
stakeholders.
– The PMBOK acknowledges that quality requirements can be
subjective and vary among stakeholders and that meeting those
requirements may involve trade-offs among project constraints such
as scope, time, and cost. Therefore, the PMBOK emphasizes the
importance of establishing clear quality requirements early in the
project and continuously monitoring and controlling quality
throughout the project life cycle.

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 A Formal definition of Quality
In ISO 8402 The International Organization for Standardization (ISO) defines
quality as “the totality of features and characteristics of a product or service
that bear on its ability to satisfy stated or implied needs. Not to be mistaken
for “degree of excellence” or “fitness for use” which meet only part of the
definition”.

This definition is really quite interesting, first because it is published by ISO,

and second because it specifically rebuts the definition that Joseph Juran
used throughout his career, “quality = fitness for use.”

In contrast, Philip Crosby used the definition, “quality = conformance to

specifications,” which is also narrower than ISO 8402. So here you have four
quite different definitions, and each can be successfully defended as the best
in the right situation. There probably never will be an ultimate definition of
this all-important word, as the definition is constantly evolving.
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 Key Concepts about Quality
1. Quality improvement is a never-ending process.
2. Top management commitment, knowledge, and active participation are
critical.
3. Management is responsible for articulating a company philosophy, goals,
measurable objectives, and a change strategy.
4. All employees in the organization need to be active participants.
5. A common language and set of procedures are important to communicate
and support the quality effort.
6. A process must be established to identify the most critical problems,
determine their causes, and find solutions.
7. Changes in company culture, roles, and responsibilities may be required.

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Benefits of applying Quality

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 Quality and 3C’s
SCOPE TIME COST QUALITY

↓ ↑↑ ↓↓

↑
↑ ↑↔ ↔↓

↔ ↑ ↓

↓ ↔↓ ↔↑

↓
↑ ↔↓ ↔↑

↔ ↔↓ ↔↑

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1. A contract is awarded to a reputable contractor to paint a stone building with
Enamel Paint. During the execution, the City Mayor comments that “it is not
quality work”. Which of the following statement(s) is true?
a) The contractor is performing Quality work.
b) The Mayor disagrees with project requirements.
c) The Cost of attaining quality work on stone buildings is high.
d) The Paint must be tested for quality assurance.

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2. A contract is given to a tech company to develop a special GPS for the
surveying team. After the deployment of the product, it is noted that the tablets are
not usable because the cold weather required workers to wear gloves. Which of
the following statement(s) are correct ?
a) The GPS tablet made was not of approved quality.
b) The requirement matrix missed an important feature.
c) The Project Manager should be criticized for his lack of technical knowledge.
d) The project management technique used was inappropriate.

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3. A contractor is charged with nonconformance for not achieving the required
compressive strength. The quality process clearly defined the use of a machine
mixer with a Cement: Sand: Crush ratio of 1:2:4. The contractor claims that he
followed all the procedures and provides with a certificate from Consultant’s
Supervisor. Which of the following is most accurate?
a) The PM should follow a sequence of Verification, Investigation,
documentation, correction, and closing.
b) The PM shall terminate the contract.
c) The PM shall assume all the responsibility for the event.
d) The PM should charge more over time hours.

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Organizational Strategy, Project
and Quality
Organizational Strategy is the overall winning
plan, direction, goal of the company

Projects are typically undertaken to achieve

specific objectives that support the overall
organizational strategy.

Project quality is a critical factor in achieving

these objectives. High-quality projects that are
completed on time and within budget are
more likely to achieve their objectives and
contribute to the overall success of the
organization. •15
 Organizational Strategy, Project
and Quality
Alignment: Projects must be aligned with the overall organizational
strategy to ensure that they are contributing to the organization's
goals. Projects that are not aligned with the strategy may not be a
priority for the organization and may not receive the necessary
resources and support to be successful.

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 Organizational Strategy, Project
and Quality
Prioritization: The organization's strategy should be used to
prioritize projects based on their importance to achieving the
organization's goals. High-priority projects should receive more
attention and resources to ensure that they are completed
successfully.

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 Organizational Strategy, Project
and Quality
Quality standards: The organization's strategy should also define
the quality standards that projects must meet to be successful.
These standards should be clearly communicated to the project
team and incorporated into the project plan to ensure that the
project meets the necessary quality requirements.

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 Project Quality Management
Project Quality Management includes the processes for incorporating the
organization’s quality policy regarding planning, managing, and controlling
project and product quality requirements in order to meet stakeholders’
objectives. Project Quality Management also supports continuous process
improvement activities as undertaken on behalf of the performing organization.

The Project Quality Management processes are:

8.1 Plan Quality Management—The process of identifying quality requirements
and/or standards for the project and its deliverables and documenting how the
project will demonstrate compliance with quality requirements and/ or
standards.
8.2 Manage Quality—The process of translating the quality management plan
into executable quality activities that incorporate the organization’s quality
policies into the project.
8.3 Control Quality—The process of monitoring and recording the results of
executing the quality management activities to assess performance and ensure
the project outputs are complete, correct, and meet customer expectations.
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 Quality Management Approaches
Project Quality Management addresses the management of the project and
the deliverables of the project. It applies to all projects, regardless of the
nature of their deliverables. Quality measures and techniques are specific
to the type of deliverables being produced by the project. For example, the
project quality management of software deliverables may use different
approaches and measures from those used when building a nuclear power
plant. In either case, failure to meet the quality requirements can have serious
negative consequences for any or all of the project’s stakeholders. For
example:

• Meeting customer requirements by overworking the project team may

result in decreased profits and increased levels of overall project risks,
employee attrition, errors, or rework.
• Meeting project schedule objectives by rushing planned quality
inspections may result in undetected errors, decreased profits, and
increased post-implementation risks.

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 Quality Management Approaches
Quality and Grade are not Same
As discussed earlier Quality and grade are not the same concepts. Quality as
a delivered performance or result is “the degree to which a set of inherent
characteristics fulfill requirements” while Grade as a design intent is a
category assigned to deliverables having the same functional use but
different technical characteristics. The project manager and the project
management team are responsible for managing the trade-offs associated with
delivering the required levels of both quality and grade. While a quality level
that fails to meet quality requirements is always a problem, a low-grade
product may not be a problem. For example:

• It may not be a problem if a suitable low-grade product (one with a limited

number of features) is of high quality (no obvious defects). In this example,
the product would be appropriate for its general purpose of use.

• It may be a problem if a high-grade product (one with numerous features)

is of low quality (many defects). In essence, a high-grade feature set would
prove ineffective and/or inefficient due to low quality. •21
 Quality Management Approaches
The Importance of Designing Quality into Deliverables
Prevention is preferred over inspection. It is better to design quality into
deliverables, rather than to find quality issues during inspection. The cost of
preventing mistakes is generally much less than the cost of correcting
mistakes when they are found by inspection or during usage.
Depending on the project and the industry area, the project team may need a
working knowledge of statistical control processes to evaluate data
contained in the Control Quality outputs. The team should know the
differences between the following pairs of terms:

Prevention (keeping errors out of the process) and inspection (keeping

errors out of the hands of the customer);

Attribute sampling (the result either conforms or does not conform) and
variable sampling (the result is rated on a continuous scale that measures
the degree of conformity); and

Tolerances (specified range of acceptable results) and control limits (that

identify the boundaries of common variation in a statistically stable process or
process performance).
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 Quality Management Approaches
Effective Quality Management Techniques
There are five levels of increasingly effective quality management as follows:

• Usually, the most expensive approach is to let the customer find the
defects. This approach can lead to warranty issues, recalls, loss of
reputation, and rework costs.

• Detect and correct the defects before the deliverables are sent to the
customer as part of the quality control process. The control quality
process has related costs, which are mainly appraisal costs and internal
failure costs.

• Use quality assurance to examine and correct the process itself and
not just special defects.

• Incorporate quality into the planning and designing of the project and
product.

• Create a culture throughout the organization that is aware and committed

to quality in processes and products.
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 Quality Management Approaches
TRENDS AND EMERGING PRACTICES IN PROJECT QUALITY MANAGEMENT

Modern quality management approaches seek to minimize variation and to

deliver results that meet defined stakeholder requirements. Trends in Project
Quality Management include but are not limited to:

Customer satisfaction. Understand, evaluate, define, and manage requirements

so that customer expectations are met. This requires a combination of
conformance to requirements (to ensure the project produces what it was created
to produce) and fitness for use (the product or service needs to satisfy the real
needs). In agile environments, stakeholder engagement with the team ensures
customer satisfaction is maintained throughout the project.

Continual improvement. The plan-do-check-act (PDCA) cycle is the basis for

quality improvement as defined by Shewhart and modified by Deming. In
addition, quality improvement initiatives such as total quality management (TQM),
Six Sigma, and Lean Six Sigma may improve both the quality of project
management, as well as the quality of the end product, service, or result.
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 Quality Management Approaches
Trends & Emerging Practices

Management responsibility. Success requires the participation of all

members of the project team. Management retains, within its responsibility for
quality, a related responsibility to provide suitable resources at adequate
capacities.

Mutually beneficial partnership with suppliers. An organization and its

suppliers are interdependent. Relationships based on partnership and
cooperation with the supplier are more beneficial to the organization and to the
suppliers than traditional supplier management. The organization should prefer
long-term relationships over short-term gains. A mutually beneficial
relationship enhances the ability for both the organization and the
suppliers to create value for each other, enhances the joint responses to
customer needs and expectations, and optimizes costs and resources.

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 Quality Management Approaches
Project Quality Tailor Considerations
What is Project Tailoring?
The project manager works with the project team and other stakeholders to determine and use
the appropriate generally recognized good practices for each project. Determining the
appropriate combination of processes, inputs, tools, techniques, outputs and life cycle phases
to manage a project is referred to as “tailoring” the application of the knowledge described in
this guide.

TAILORING CONSIDERATIONS

Each project is unique; therefore, the project manager will need to tailor the way Project
Quality Management processes are applied. Considerations for tailoring include but are not
limited to:

Policy compliance and auditing. What quality policies and procedures exist in the
organization? What quality tools, techniques, and templates are used in the organization?

Standards and regulatory compliance. Are there any specific quality standards in the
industry that need to be applied? Are there any specific governmental, legal, or regulatory
constraints that need to be taken into consideration?

Continuous improvement. How will quality improvement be managed in the project? Is it

managed at the organizational level or at the level of each project?

Stakeholder engagement. Is there a collaborative environment for stakeholders and

suppliers? •26
 Quality Management Approaches
Project Quality Tailor Considerations
CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTS
In order to navigate changes, agile methods call for frequent quality and
review steps built in throughout the project rather than toward the end of the
project. Recurring retrospectives regularly check on the effectiveness of
the quality processes. They look for the root cause of issues then
suggest trials of new approaches to improve quality. Subsequent
retrospectives evaluate any trial processes to determine if they are working
and should be continued or new adjusting or should be dropped from
use. In order to facilitate frequent, incremental delivery, agile methods focus
on small batches of work, incorporating as many elements of project
deliverables as possible. Small batch systems aim to uncover
inconsistencies and quality issues earlier in the project life cycle when the
overall costs of change are lower.

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Pre-requisites for Project
Quality Management.

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 Cost of Quality
Quality

Cost Speed

Traditionally Managements are told to choose two of

these 3 interconnected non-conflicting Ideas

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 Cost of Quality
The purpose of the cost of quality (COQ) techniques is to provide a
tool to management for facilitating quality programs and quality
improvement activities

It is
It is never
THE TWO Uneconomical
economical to
EXTREMES to have 100%
Ignore Quality
Quality

The real value of a

quality program is
determined by its ability
to contribute to
customer satisfaction
and profits

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 Cost of Quality
The cost of quality (COQ) includes all costs incurred over the life of the
product by investment in preventing nonconformance to requirements,
appraising the product or service for conformance to requirements, and
failing to meet requirements (rework). Failure costs are often
categorized into internal (found by the project team) and external
(found by the customer). Failure costs are also called the cost of poor
quality. Section 8.1.2.3 provides some examples to consider in each
area. Organizations choose to invest in defect prevention because of
the benefits over the life of the product. Because projects are
temporary, decisions about the COQ over a product’s life cycle are
often the concern of program management, portfolio management, the
PMO, or operations. PMBOK

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 Cost of Quality
u Cost-benefit analysis. A cost-benefit analysis is a financial
analysis tool used to estimate the strengths and weaknesses of
alternatives in order to determine the best alternative in terms of
benefits provided. A cost-benefit analysis will help the project manager
determine if the planned quality activities are cost effective. The
primary benefits of meeting quality requirements include less rework,
higher productivity, lower costs, increased stakeholder satisfaction, and
increased profitability. A cost-benefit analysis for each quality activity
compares the cost of the quality step to the expected benefit.

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 Cost of Quality
u Cost of quality. The cost of quality (COQ) associated with a
project consists of one or more of the following costs.

• Prevention costs. Costs related to the prevention of poor quality in

the products, deliverables, or services of the specific project.
• Appraisal costs. Costs related to evaluating, measuring, auditing,
and testing the products, deliverables, or services of the specific
project.
• Failure costs (internal/external). Costs related to
nonconformance of the products, deliverables, or services to the
needs or expectations of the stakeholders.

The optimal COQ is one that reflects the appropriate balance for
investing in the cost of prevention and appraisal to avoid failure costs.

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 Cost of Quality
Cost of Conformance Cost of Nonconformance
Prevention Costs Failure Cost
(Build a quality product) Internal Failure Costs
• Training (Failures found by the project)
• Document processes • Rework
• Equipment • Scrap
• Time to do it right
External Failure Costs
Appraisal Costs (Failures found by the customer)
(Assess the quality) • Liabilities
• Testing • Warranty work
• Destructive testing loss • Lost business
• Inspections
Money spent during and after the project
because of failures
Money spent during the project to avoid
failures
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 Goals of Quality-Cost System
Utilize Quality costs to
Invest in the Right
completely reduce
prevention Activities
(zero) the Failure Cost

Continuously evaluate
Reduce Appraisal Costs
and redirect prevention
as the results are being
efforts to gain further
achieved
improvement

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 Goals of Quality-Cost System
HIGH

COST
Total Cost

Cost of Conformance
Cost of Failure /
to Quality
Appraisal

LOW Optimal Cost

LOW HIGH

QUALITY
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1. Which of the following is a type of cost of quality?
a) Training costs
b) Advertising costs
c) Rent costs
d) Travel costs

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2. When is it more expensive to correct a failure?
a) When it is discovered earlier in the operating process
b) When it is discovered later in the operating process
c) When it is discovered after product or service used by the customer
d) When it is discovered during the design phase

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3. Which of the following is a consequence of ignoring the cost of quality?
a) Increased profitability
b) Decreased customer complaints
c) Ineffective management
d) Reduced competition

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4. Which of the following can provide specific warnings against quality-related
financial situations?
a) Cause-and-effect analysis
b) Customer feedback
c) Quality cost program
d) Statistical analysis

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